The
Human Resources Director recommends approval of purchase request 44150 to Brown
and Brown, Inc. for excess stop loss health insurance premium for a total of $367,916.00
for fiscal year 2012.

Analysis:

The
City of Leesburg is self insured for the employee and retiree health insurance
program and purchases excess stop loss coverage in the event of very large
health insurance claims. Excess stop loss protection or reinsurance is
protection for our self-funded group medical program from catastrophic losses,
and to limit the City’s total claim exposure. The excess stop loss program
consists of two (2) layers of protection, Specific Stop Loss Coverage, and Aggregate
Stop Loss Coverage. Specific Stop Loss Coverage, currently with an attachment
point of $80,000, provides reimbursement from the reinsurance company for the
amount of any individual claim that exceeds $80,000. Additionally, the
Aggregate Stop Loss Coverage protects the City of Leesburg if the total claims
experience during the policy year exceeds the Aggregate Stop Loss attachment
point which is currently $5,193,463 or 125% of the expected claims for FY
11/12.

This
purchase request is for the payment of the premium to Brown and Brown, Inc. the
insurance agent of record approved by commission August 28, 2006 by Resolution
7707.

Options:

1.
Approve the purchase request to Brown and Brown, Inc.; or

2.
Such alternative action as the Commission may deem appropriate

Fiscal
Impact:

The
amount of $367,916 has been budgeted and is available in the account listed for
this purpose.